ASX-listed company YPB Group has secured A$3.12 million to accelerate its upcoming token issue.
YPB, who provides anti-counterfeit technology targeting Australia, South East Asia and China, was granted approval from the ASX earlier this year to run a token sale on the exchange.
The group has announced it has executed a binding term and token sale agreement with First Growth Funds, DigitalX and Blockchain Global Limited to provide funding and token sale advisory services.
All three companies will provide A$1.5 million in secured convertible note funding to propel YPB’s imminent token issue.
The group has also secured an additional A$1.62 million in an oversubscribed equity placement.
YPB CEO and executive chairman John Houston said the funds had been secured following technical advancements on the group’s smartphone readable and anti-counterfeit technology.
The YPB technology integrates secure anti-counterfeit marks into branded packaging to deliver certainty of authenticity of the product, with authenticity triggering customer engagement.
“It is exciting to see the overwhelming interest for YPB’s IP-protected world-beating secure smartphone serialisation solution,” said Houston.
“The commercial prospects of this breakthrough are quickly being recognised globally and we are looking forward to an exciting roadmap ahead.”
The A$3.12 million investment was structured by investment advisory First Growth Funds, which enlisted support from DigitalX and Blockchain Global.
FGF executive director Anoosh Manzoori said FGF was the cornerstone investor with a A$500,000 investment.
The funds raised will be invested into a sales and channel strategy plan agreed by all parties.
YPB will also implement corporate cost-reduction initiatives.
DigitalX, an ICO corporate advisory services firm, alongside multinational enterprise Blockchain Global, will advise and assist YPB with the development and distribution of the ‘YPB token’ and introduce the tokens to international exchanges.
“We are pleased to advise publicly listed YPB on its upcoming token issue and are excited to see blockchain technology applied to solving a real world problem, ensuring that fake goods do not infiltrate the supply chain for Australian businesses,” said DigitalX CEO Leigh Travers.
Blockchain Global’s association with YPB is an exciting fit according to CEO Sam Lee, who pointed to his company’s recent A$14 million investment in Japanese listed company Path Corp.
“It further strengthens our global network, incorporating strategic partnerships with First Growth Funds and DigitalX,” he said.
“The utility of YPB’s technology creates a strong opportunity in the Asian markets and we look forward to seeing blockchain technology enhance its penetration.”
At the close of trade YPB shares were down 32 percent at 2.3 cents per share.